—(1) A life policy insuring the life of a person which is issued by a licensed insurer shall be void unless —

(a)

the person effecting the insurance has an insurable interest in the life which is insured at the time the insurance is effected;

(b)

the life which is insured is that of —

(i)

the person effecting the insurance;

(ii)

his spouse at the time the insurance is effected;

(iii)

his child or ward under the age of 18 years at the time the insurance is effected; or

(iv)

any other person on whom the person effecting the insurance is, at the time the insurance is effected, wholly or partly dependant; or

(c)

the life policy is one in respect of which all of the conditions referred to in subsection (2A) or (2B) are satisfied.

[3/2009 wef 01/03/2009]

[Act 11 of 2013 wef 18/04/2013]

(2) Where subsection (1)(a) applies, the policy moneys payable under the life policy shall not exceed the amount of the insurable interest at the time the insurance is effected.

[3/2009 wef 01/03/2009]

(2A) Section 5 of the Civil Law Act (Cap. 43) and section 62 shall not apply to a life policy, and a life policy shall not be void, if all of the following conditions are satisfied:

(a)

the life which is insured is that of the settlor of a trust;

(b)

the person effecting the insurance is the trustee of the trust;

(c)

any beneficiary of the trust —

(i)

has an insurable interest in the life of the settlor at the time the insurance is effected; or

(ii)

is —

(A)

the settlor’s spouse at the time the insurance is effected;

(B)

the settlor’s child or ward under the age of 18 years at the time the insurance is effected; or

(C)

any other person on whom the settlor is, at the time the insurance is effected, wholly or partly dependant; and

(d)

the settlor consents in writing to the effecting of the insurance before it is effected.

[3/2009 wef 01/03/2009]

(2B) Section 5 of the Civil Law Act and section 62 shall not apply to a life policy, and a life policy shall not be void, if all of the following conditions are satisfied:

(a)

the life which is insured is that of a beneficiary of a trust (referred to in this subsection as the relevant beneficiary);

(b)

the person effecting the insurance is the trustee of the trust;

(c)

any beneficiary of the trust —

(i)

has an insurable interest in the life of the relevant beneficiary at the time the insurance is effected; or

(ii)

is —

(A)

the relevant beneficiary’s spouse at the time the insurance is effected;

(B)

the relevant beneficiary’s child or ward under the age of 18 years at the time the insurance is effected; or

(C)

any other person on whom the relevant beneficiary is, at the time the insurance is effected, wholly or partly dependant; and

(d)

the relevant beneficiary consents in writing to the effecting of the insurance before it is effected.

[3/2009 wef 01/03/2009]

(2C) Subsections (1), (2), (2A) and (2B) shall apply to a life policy regardless of whether the proper law of the life policy is the law of Singapore.

[3/2009 wef 01/03/2009]

(3) In this section, “insuring the life of a person” means insuring the payment of money (or the equivalent) on that person’s death or on the happening of any contingency dependent on the termination or continuance of that person’s life, and includes granting an annuity to commence on that death or at a time to be determined by reference thereto or to any such contingency.

(4) In so far as in the case of any life policy the policy moneys do not consist wholly of a cash payment due on the death in question, the limit under this section on the amount to be paid shall be applied by reference to the value of the right to the policy moneys immediately after the death or the happening before the death of any event on which they become payable.